US Treasury Secretary Bessent says we have the best performing bond market in the world and we will get to the other side of the energy supply shock, adds the Treasury market is in very good shape and term premium is at lowest differential in many years

The substantive thread here is the buyback operation, where the framing of buying cheap and taking less than indicated is consistent with how official-sector buyback programmes have been run elsewhere, as liquidity-support tools that lean against dislocated pricing in off-the-run issues rather than as size commitments; the tell in past episodes has been whether tender results show dealers offering paper at concessions or walking away. The term premium observation points to the long end's pricing of duration risk relative to the expected policy path, and an official drawing attention to a compressed premium is usually read as a defence of the issuance mix and coupon-versus-bill balance, a debate that has recurred whenever deficit trajectories and auction tails have been in focus. The energy supply shock reference frames the inflation impulse as transitory supply rather than demand, the standard official position in such episodes, and one that historically leaves the market watching breakevens and the front of the real curve for confirmation. Follow-ons worth noting are the next buyback results, auction concession patterns in coupons, and whether other officials echo the characterisation of the shock.